The Salina Journal from Salina, Kansas · Page 5

THE SAUNA JOURNAL HiiiisiifiyiiTiiii SUNDAY, APRIL 29, 2001 • WORLD FINANCES Countries pledge to keep their wealth intact Leaders of the world's wealthiest countries discuss how and why their financial health affects the global economy By MARTIN CRUTSINGER The Associated Press WASHINGTON — Finance leaders from the United States and other wealthy industrial countries Saturday pledged to remain "vigilant and forward-looking" in their efforts to fight the current global slowdown. The finance ministers and central bank presidents from the Group of Seven countries — the United States, Japan, Germany, France, Britain, Italy and Canada — promised to pursue appropriate policies in each of their countries that wiU lead the way to stronger growth. Treasury Secretary Paul O'Neill, calling the talks "candid and productive," said he told the group that U.S. officials believe a sound foundation has been laid for renewed growth in the United States. "We all agreed that growth in our economies is crucial to global prosperity," O'Neill said after nearly six hours of discussions ended. "I emphasized to my colleagues my belief that in the United States, the foundations for economic expansion are sound." In their six-page joint statement, the G-7 finance officials endorsed O'Neill's assessment, saying that while U.S. growth has slowed sharply, the country's long-term economic fundamentals "remain strong." The G-7 statement urged the Federal Reserve, which has already cut interest rates four times this year to make sure the country doesn't slide into a recession, to keep pursuing policies that will contribute to sustained growth with stable inflation. Controversy not addressed The G-7 statement ducked one controversy going into the meeting: The question of whether the European Central Bank should start cutting interest rates to bolster global growth prospects. Bank officials, citing concerns about inflation, refused again this week to do so, and the G-7 statement was silent on what interest rate policies the Europeans should pursue. After the meeting Wim Duisenberg, the head of the European Central Bank, repeated his opposition to lowering European interest rates. He said such a move would "not enhance the credibility" of the central bank, which has been established to manage the euro, the new joint currency of 12 European countries. For Japan, where the weakening economy has triggered another change in prime ministers, the G-7 statement urged the new government to pursue "vigorous implementation of financial and corporate ' sector reforms" to speed economic recovery New Japanese Prime Minister Junichiro Koizumi campaigned on a pledge to clean up the country's bad bank loans and end the country's decade-long economic malaise. The discussions at Blair House, the government's guest house for foreign dignitaries, were led by O'Neill and Federal Reserve Chairman Alan Greenspan. G-7 finance ministers and central bank presi­ dents meet three times a year to promote better coordination of economic policies. Unlike the sessions last spring, the talks this year were conducted without thousands of angry protesters parading through the streets of Washington. The anti- globalization forces plan only a small two-hour demonstration on Sunday Fight the slowdown All the discussions were aimed at finding a way to fight a global slowdown, led by a sharp drop in U.S. activity, that has pushed world growth prospects to the lowest point since the 1997-98 Asian currency crisis. O'Neill stressed that the United States believes that the Fed's rate cuts and efforts by President Bush to enact significant tax relief will be enough to guarantee a rebound in U.S. growth in coming months. The finance leaders also worked to ensure that economic troubles in Turkey and Argentina do not touch off a new round of global contagion. Argentine Economy Minister Domingo Cavallo met with officials of the International Monetary Fund on Saturday and said afterward that he believed the country was close to reaching agreement with the IMF on a new rescue program to provide loans to help stabilize the Argentine economy The G-7 finance talks Saturday preceded the spring meetings of the 183-nation International Monetary Fund and its sister lending organization, the World Bank. O'Neill told reporters that he was pleased with the reception to U.S. proposals to strengthen the IMF's early-warning capabilities to detect financial problems before they become crises. "I stressed that strong and effective crisis prevention is a top priority" O'Neill said. Before the G-7 talks, O'Neill had a string of one-on-one sessions with various finance ministers including a get-acquainted gathering with Japan's Masajuro Shiokawa, who was picked just this week to be Japan's new finance minister T DRUG WAR T U.S.-CHINA RELATIONS TV NEWS SHOWS Peru grounds flights After fatal attack on a missionary plane, U.S. and Peru rethink policy By The Associated Press WASHINGTON — It was brutal, but effective. Peru's president ordered drug planes blown out of the sky to stop the flights of semiprocessed cocaine from his country to Colombia in the early 1990s. As a result, Peru's production of coca, the raw material for cocaine, has dropped steadily But following the fatal attack April 20 on an American missionary plane in Peru, the policy is on hold. Some worry the drug flights will resume; drug policy analysts are not so sure. "I think a suspension of surveillance flights could occur for quite a long period of time before you would see a major shift of cultivation back to Peru," said Rensselaer Lee, a consultant on international drug issues. Demand for Peruvian coca leaf fell and prices dropped, giving farmers more incentive to participate in alternative crop programs. Peru coca production, which reached 319,000 acres in 1992, fell to 84,500 acres by last year, according to State Department figures. U.S. officials largely credited the shoot-downs for the drop. But the United States has stopped surveillance missions and Peru has stopped interdictions following the shooting that killed American missionary Veronica "Roni" Bowers and her 7-month-old daughter It is uncertain how long the flights will remain suspended. A . U.S. delegation traveled to Lima, the capital, and planned to meet Monday with Peruvian officials to explore what went wrong. Bush changes the tone Bush departs from historic U.S. position on defense of Taiwan By The Associated Press WASHINGTON — President Bush has delighted Taiwan, infuriated China and puzzled those who follow activity in the region by announcing plans to sell Taiwan new weapons and pledging to come to its defense. "We do look at this new government with a very positive perspective," Taiwan's top diplomat in Washington, C.J. Chen, said last week. The veteran diplomat kept his enthusiasm within bounds, mindful that U.S. relations with Taiwan ebb and flow — as they do with China, as well. The good week for Taiwan topped off a bad month for U.S.­ Chinese relations. It started with the collision of a U.S. spy plane and a Chinese fighter plane over the South China Sea April 1 and ended with the Bush administration's apparent tilt toward Taiwan. On Tuesday the administration approved the sale to Tai­ wan of four Kidd-class destroyers, up to eight diesel submarines, and 12 P-3 Orion submarine-killer aircraft. On Wednesday, Bush followed that up with what many regarded as an unusually strong commitment to Taiwan's defense. China considers Taiwan as part of its territory and has not ruled out retaking it by force. In an interview with ABC, Bush was asked whether the United States had an obligation to defend Taiwan if the island were attacked by China. "Yes we do ... and the Chinese must understand that," Bush responded. Did that mean the "full force of American military?" "Whatever it took to help Taiwan defend herself," Bush replied. The comments seemed to be a departure from the historic U.S. position of maintaining open options on the issue of Taiwan's defense. The theory known as "strategic ambiguity, is that uncertainty about a U.S. response deters both Chinese aggression against Taiwan and Taiwanese provocations against the mainland. NOTICE OF HEARING ON AMENDING THE 200(M)1 BUDGET The governing body of Salina Unified School District #305, Saline County, Kansas, will meet on the 8th day of may, 2001 at 5:00 p.m., at District Office, 1511 Gypsum Avenue, Salina, Kansas for the purpose of hearing and answering objections of taxpayers relating to the proposed amended use of funds. Detailed budget information is available in the Business Office and wiU be available at this hearing. SUMMARY OF AMENDMENTS Actual Tax Rate General Fund 20.0 Adult Education 0.5 Adopted Budget 2000-01 Amount of Tax to be Levied $5,470,864 $155,307 Expenditures and IVansfers $31,100,148 $315,000 Proposed Amendment 2000-01 Budget Expenditures and Ti-ansfers $31,443,948 $330,000 The comments enraged China. "There is only one China in the world. Taiwan is part of China. It is not a protectorate of any foreign country" Foreign Ministry spokeswoman Zhang Qiyue said." To Dana Dillon of the Heritage Foundation, Bush's statement was a breakthrough for Taiwan because it replaces strategic ambiguity with "strategic clarity" "Certainly he said what has not been said before," Dillon said. "It's been a good week for peace in the Taiwan Straits." It is not normal for a president to announce policy changes on sensitive issues during a television interview. Winston Lord, a U.S. ambassador to China during the Reagan administration, said Bush's remarks were new, but thought the president was winging it. "Maybe the president should have been better briefed," Lord said. Guest lineup for the Sunday TV news shows: ABC's "This Week" — Sen. John McCain, R-Ariz.; Sen. Max Cleland, D- Ga.; Sen. John Kerry, D-Mass.; Sen. Chucl< Hagel, R-Neb.; White House chief of staff Andrew Card. CBS' "Face the Nation" — White House chief of staff Andrew Card; House Minority Leader Dicl< Gephardt, D-Mo.; Sen. John Breaux, D-La. NBC's "IVleet the Press" — White House senior adviser Karl Rove; Sen. Joseph Lieberman, D-Conn. CNN's "Late Edition — White House senior adviser Karl Rove; Sen. John Kerry, D-Mass., Sen. Chuck Hagel, R-Neb.; Democratic strategist James Carville; Florida Secretary of State Katherine Harris. "Fox News Sunday" — Vice President Dick Cheney; Democratic National Chairman Terry McAuliffe. WALLACE - Londscops «fl8*i<wwtMw*^^ & Irrigation, Inc. To better serve our loyal customers and others in the area, we will be open this Spring to retail trees and shrubs. We will open to the public Saturday, April 28. . ~ Our hours will be: Saturday, 10 a.m. to 5 p.m.. Sunday, 1 p.m. to 5 p.m. Weekdays 4 p.m. to 8 p.m. If these times will not work, please call for ah appointment. 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